Thursday, September 19, 2013

We have recently hired a young gal who previously worked for a local competitor. During her interview she mentioned that she was paid the same wage we were hiring her at, but that she was responsible for paying her own taxes. So I asked her if she had her own business license for cleaning and she said "no". Red flags instantly started going off in my head, as I was listening to her story, because I knew that this other business was doing thing illegally. Now I'm not an Human Resource professional, in the sense that I have a degree in HR, but I have been hiring people for twelve years and I know that hiring Independent Contractors can be risky business if you do not do it by the book.

Here is a list of questions to ask yourself, as a business, to ensure that you are actually hiring someone as an independent contractor and not as an employee.

You usually DO have to do the following for the worker(s) you are hiring, since they are NOT independent contractors.

Many companies are tempted to hire independent contractors, and not employees, as it saves them time, money and headaches but most companies do not ensure they are doing things legally. The other business, my new employee worked for, was definitely not in compliance and, if she reports them, could get in serious trouble.

So, don't make the same mistake and ensure your "Independent Contractor" is truly an independent contractor and not an employee.